Treasurer Jim Chalmers has set off national guessing game about which of the tax breaks is next in line for the chop.
was forced to intervene on Wednesday to quash speculation that the tax-exempt status of the family home might be under threat.
Under the existing tax rules, when the costs associated with owning an investment property are greater than the rental income received from the property, landlords can deduct the loss against other income, such as salary and wages. Because of the steep rise in borrowing costs, this figure is expected to jump by 35 per cent to $24.4 billion this year. Over the four-year forward estimates, Treasury estimates the cost to the budget in terms of forgone revenue will amount to $101.6 billion.But while any self-respecting treasurer would salivate at the prospect of finding a way to claw back this forgone revenue, it’s very hard to do. Especially given the current rental crunch.
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PM undercuts the Treasurer as they differ on potential new taxesDivision was apparent during Wednesday’s media rounds as the Assistant Treasurer, the Treasurer and the Prime Minister all attended interviews with differing dialogue towards potential new taxes. Treasurer Jim Chalmers refused to rule out a housing tax, while PM Anthony Albanese assured an audience the family home would not be taxed, leaving Assistant Treasurer Stephen Jones to deliver what some are calling a premonition as he said the current heaviest weight on the budget is investment housing.
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Capital gains tax breaks cost the most but Chalmers targets superTax breaks on superannuation earnings and contributions will amount to $48.2 billion this financial year.
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Chalmers’ ‘never ever’ super moment aims to get the politics rightJust as Labor gave John Howard no latitude over his GST strategy, the Coalition will give Labor none over this, writes Phillip Coorey.
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Chalmers won’t find it easy to get his hands on $250b of tax breaksSophisticated taxpayers have a knack of maneuvering around the system to minimise their tax when governments shift the goalposts, writes John Kehoe.
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